MONTREAL, Sept. 1, 2015 /CNW Telbec/ - Pascan Aviation Inc., Les Structures & Composantes Avtech Inc., 3939421 Canada Inc., 8039879 Canada Inc., Pascan Express Inc., 8039895 Canada Inc., and Les Carburants Avtech Inc. (the "Pascan Companies") announced today that they have initiated proceedings on August 31, 2015, under the Companies' Creditors Arrangement Act (the "CCAA") together with two of their creditors, Business Development Bank of Canada ("BDC") and Investissement Québec ("IQ"), in order to facilitate a restructuring of its operations.
The Superior Court of Quebec granted an initial order providing for a stay of creditor claims against the Pascan Companies until September 29, 2015, renewable thereafter. The initial order also includes the establishment of an interim financing of $1 million granted by BDC and IQ, in order to support the Pascan Companies' recovery plan.
The Pascan Companies anticipate that a restructuring will allow them to carry on their business as usual and preserve value for stakeholders, while pursuing their mission to connect the different regions to one another and with major centers. Throughout the CCAA proceedings, the Pascan Companies will continue to provide a reliable service, fly normal schedules, offer safe flights, and honor reservations and tickets.
The CCAA proceedings will, among other things, provide the Pascan Companies with the time and stability to restructure its business, negotiate a restructuring plan with stakeholders, compromise creditor claims, restructure material operating contracts, secure new financing, and otherwise consider restructuring and refinancing options.
The Pascan Companies are represented by the law firm Stikeman Elliott LLP in connection with the CCAA proceedings. PricewaterhouseCoopers Inc. has been appointed by the Court as the Monitor of the Pascan Companies in these proceedings. Information about the Pascan Companies' CCAA proceedings, including all Court Orders and the Monitor's reports, will be available at noon on Tuesday September 1st, 2015 on the Monitor's website, at http://www.pwc.com/car-groupepascan.
SOURCE Pascan Aviation inc.
For further information: Denis Charest, President, Tel.: 450-443-0500, ext. 2229